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Oil slides toward $60 ahead of OPEC+ meeting to boost global supply

Added 03-02-21 04:37:02am EST - “Oil slides toward $60 ahead of OPEC+ meeting to boost global supply” - Rt.com

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Posted By TheNewsCommenter: From Rt.com: “Oil slides toward $60 ahead of OPEC+ meeting to boost global supply”. Below is an excerpt from the article.

Both global crude benchmarks Brent and US West Texas Intermediate (WTI) were down more than one percent on Tuesday, trading at $62.89 and $59.92 per barrel at 08:42 GMT, respectively.

The oil-producing alliance led by Russia and Saudi Arabia will meet on Thursday to decide on easing supply curbs after prices posted their best-ever start to a year. Saudi Arabia has already called on the producers to remain “extremely cautious” even as signs of tightening emerge.

Statistics show the kingdom’s unilateral additional cut in oil production sent the total OPEC output down by 870,000 barrels per day (bpd) in February, the first monthly drop in the alliance’s production since June last year.

Given the recent rally in oil prices, analysts expect the group to lift production in some form and the Saudis to reverse their unilateral cut. Oil prices have been roaring back after a tumultuous 2020, when Covid-19 crippled demand for the commodity around the world.

“The group will need to be careful; they will want to make sure they do not surprise the market by easing too much. There is a large amount of speculative money in oil at the moment, so they will want to avoid any action that will see them running for the exit,” said ING strategists Warren Patterson and Wenyu Yao.

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